Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

The components of the Company’s income tax expense (benefit) are as follows for the periods indicated below (dollars in thousands):

	Nine Months Ended September 30,
	2019			2018
Current federal income tax expense (benefit)	$	-		$	156
Current state income tax expense (benefit)		-			47
Deferred federal income tax expense (benefit)		(12,222	)		3,526
Deferred state income tax expense (benefit)		(2,758	)		796
Provision for (Benefit from) Corporate Business Taxes	$	(14,980	)	$	4,525

Reconciliation of Statutory Federal Rate to Effective Rate

The following is a reconciliation of the statutory federal rate to the effective rate, for the periods indicated below (dollars in thousands):

	Nine Months Ended September 30,
	2019					2018
Computed income tax (benefit) expense at federal rate	$	(13,906	)	21.0	%	$	17,035		21.0	%
State taxes (benefit), net of federal tax, if applicable		(2,757	)	4.2	%		832		1.0	%
Provision to return adjustment		-		-	%		4		0.0	%
REIT income not subject to tax (benefit)		1,683		(2.6	)%		(13,346	)	(16.4	)%
Provision for (Benefit from) Corporate Business Taxes/Effective Tax Rate^(A)	$	(14,980	)	22.6	%	$	4,525		5.6	%

(A)	The provision for income taxes is recorded at the TRS level.

Current and Deferred Tax Liabilities and Assets

The Company’s consolidated balance sheets, at September 30, 2019 and December 31, 2018, contain the following current and deferred tax liabilities and assets, which are recorded at the TRS level (dollars in thousands):

	Nine Months Ended September 30,
	2019		2018
Income taxes payable
Federal income taxes payable	$	-	$	156
State and local income taxes payable		-		47
Income taxes payable	$	-	$	203

	September 30, 2019			December 31, 2018
Deferred tax (assets) liabilities
Deferred tax - organizational expenses	$	-		$	(4	)
Deferred tax - mortgage servicing rights		(12,651	)		2,082
Deferred tax - net operating loss		(250	)		-
Total net deferred tax (assets) liabilities	$	(12,901	)	$	2,078